Construction begins on 90-store upscale outlet center

Simon Property Group Inc. – a corporation that has expanded in a few decades from a handful of shopping malls in Indianapolis to 230 retail centers across the globe – joined the Gila River Indian Community Tuesday to break ground on the Phoenix Premium Outlets.

The single-level shopping center with 90 upscale stores is expected to open next spring.

It is on the west side of Interstate 10 next to Wild Horse Pass Hotel & Casino. The tribe will own the land while the Simon group will own and lease the infrastructure, which will provide 360,000 square feet of leasable space to high-end manufactures of clothes, shoes, fashion accessories, leather goods and home furnishings.

“We are expecting this center to be among our stellar properties,” said Gila River Tribal Councilman Barney Enos Jr., along with the tribe’s casino, resort hotel, golf course and myriad of restaurants and entertainment facilities. “This will provide our guests the opportunity to shop in an upscale atmosphere.”

The names of the stores will be announced closer to grand opening, said Maura K. Eggan, vice president of marketing for Simon’s western region. Retailers at a Simon's premium outlet in Las Vegas include Adidas, Bass, Calvin Klein, Coach, Converse, Gymboree, Hurley, Jones New York and Liz Claiborne.

Between 150 to 175 people attended the groundbreaking, including Gila River officials, East Valley business leaders, members from other tribes and Maricopa Vice Mayor Ed Farrell and City Councilman Marvin Brown, who is the city’s liaison to Native American communities.

“We are delighted for our Gila River brothers and sisters,” Brown said. “This encourages us (in Maricopa) to be more attractive to other developers for shopping opportunities.”

Brown said the large shopping center near Maricopa could make the city more attractive for new housing development.

Brown and Farrell, along with Gila River tribal members, joined students from the St. Peter’s Indian Mission School on the Gila River Indian Community in a traditional circle dance.

The premium outlet stores are expected to generate about $140 million in annual sales, create 500 construction jobs and employ 800 to 1,000 full-time and part-time employees when open, Simon officials said.

Mark Silvestri, Simon’s executive vice president for real estate, said his company had been looking for a location to build an outlet center in the Phoenix area for about 10 years, but couldn’t find the right place until they began discussions with the tribe.

His company’s $70 million investment will add shopping to the amenities the tribe already has, he said.

“For Simon, this represents an important milestone,” he said. “And for Gila River it’s a nice complement to complete the picture.”

The outlet center at Wild Horse Pass is not the company’s first venture with a Native American community, Eggan said.

Simon has retail outlets with the Tulalip Tribes near Seattle and the Cabazon Band of Mission Indians near Palm Springs, Calif., she said.